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Southern California home sales hit 8 year high in July

Wendy Lee

Home prices in Southern California climbed 26 percent to a median of $385,000 in July, according to San Diego-based firm DataQuick. (Photo: A home for sale in Central Los Angeles). Christopher Okula/KPCC

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Home prices in Southern California climbed 26 percent to a median of $385,000 in July, compared to a year ago, according to San Diego-based firm DataQuick.

The firm reported Wednesday that the number of homes sold is approaching normal levels.

“The market continues its rebalancing act, with more and more people who’ve been ‘underwater’ now able to sell their homes at a profit, or at least break even,” said John Walsh, the firm’s president.

There were 25,419 new and resale houses and condos sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties in July, an increase of 24 percent from a year ago, DataQuick said.

Walsh said the increase in mortgage rates could have caused more people to want to buy homes and last month, there were more homes on the market for sale, compared to previous months.

When more homes for sale are added to the market, Walsh said that will impact prices. Home prices in Southern California have been increasing on a year over year basis for 16 consecutive months.

“As the mismatch between supply and demand eases, it will be more difficult for home prices to rise as steeply as we’ve seen over the past year," Walsh said.

DataQuick also noted that there were fewer distressed properties such as foreclosed homes, sold in July and that the number of absentee buyers, which include investors and people purchasing a second home, have also decreased.

Previously in The Breakdown

The Breakdown explains what's behind Southern California business and economic news. It describes the effects the headlines have on you: whether you're an investor, a business owner, an employee, homeowner, consumer or just someone who wants to know how to save a buck.